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DOLO drops by 139.13% within 24 hours as the market experiences a significant correction

DOLO drops by 139.13% within 24 hours as the market experiences a significant correction

Bitget-RWA2025/09/25 04:34
By:CryptoPulse Alert

- DOLO token plummeted 139.13% in 24 hours to $4.522, its steepest drop amid broader market correction. - The DeFi token's volatility reflects waning investor confidence and lack of fundamental catalysts post-launch. - Technical indicators show oversold RSI and bearish MACD, signaling continued downward pressure in the near term. - Historical backtesting confirms sharp corrections follow overbought conditions, aligning with current market dynamics.

On September 25, 2025,

experienced a dramatic 139.13% drop in just 24 hours, falling to $4.522—its steepest decline since launch. Over the past week, the token plunged 2803.87%, with losses reaching 6626.25% in a month and 4985.07% over the last year. This sharp highlights a widespread correction across the crypto market, with DOLO being one of the hardest hit assets.

Since entering the market, DOLO has shown considerable price swings. Its initial popularity stemmed from a novel consensus protocol and its role in a DeFi ecosystem. However, the latest price movements indicate a significant change in investor outlook. The recent plunge wiped out months of gains and renewed doubts about the token’s future prospects. Experts believe that, given the prevailing bearish trend and absence of strong fundamentals, DOLO could continue to face downward pressure in the near future.

Technical analysts have been tracking DOLO closely, identifying important support and resistance points. The token has recently tested several support levels but has yet to establish a clear bottom, signaling ongoing selling activity. The lack of a convincing reversal in candlestick patterns suggests that further declines are likely in the short term.

Market watchers have also observed that several technical indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), have weakened. The RSI has dropped into oversold territory, and the MACD continues to signal bearishness, indicating limited upward momentum. These indicators have been incorporated into backtesting models to forecast possible outcomes under similar market conditions.

Backtest Hypothesis

A backtesting approach was used to analyze DOLO’s price action, focusing on the RSI and MACD to pinpoint potential buy and sell opportunities. The goal was to assess whether such a steep decline could have been predicted based on historical trends. Past data showed that DOLO often underwent sharp corrections after prolonged overbought phases, typically following MACD divergences. The current downturn fits this recurring pattern, suggesting the market is responding to recognizable signs of imbalance.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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